Answer:
The answer is: Jamison has $175 in taxes due.
Explanation:
To determine the amount of taxes that Jamison still has to pay, we can use the following formula:
Taxes due = tax liability - (taxes withheld by employer + tax credits)
Taxes due = $7,200 - ($4,400 + $2,625) = $7,200 - $7,025 = $175
Jamison has $175 in taxes due.
Answer:
The project is worth $2,738.57.
Explanation:
Giving the following information:
You have been offered a project paying $300 at the beginning of each year for the next 20 years. The rate of return is 9%.
To calculate the present value, first, we need to calculate the final value:
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 300
n= 20
i= 0.09
FV= {300*[(1.09^20)-1]}/0.09
FV= $15,348.06
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 15,348.06/1.09^20= $2,738.57
Answer:
The objective of present Value is to present a set of cash flows based on their estimated fair value; to help decision makers in assessing the viability or otherwise of an option of investments.
Values don't stay the same year on year, various influences act to most times make the same $ amount lessened by tomorrows valuation; some factors like inflation, obsolescence, opportunity cost of not investing in other activities (cost of capital)....all these play a role in determining time value of money.
Present value attempts to harmonize all these influences and present a fair value of our $ dollar estimate of future values based on the impact of these factors.
Answer:
Po = <u>D1</u> + <u>D2</u> + <u> D3</u>
(1 + Ke) (1 + Ke)2 (1 + Ke)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28
</u>
(1 + 0.1) (1 + 0.1)2 (1 + 0.1)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>
1.1 (1.1)2 (1.1)3
Po = $10.91 + $10.33 + $21.04
Po = $42.28
Explanation:
The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.
